Ex-pat investors are underusing the offshore savings and investment centres that are available to them, according to HSBC.
The bank’s latest HSBC Ex-pat Explorer Survey, based on resp-onses from 4,127 ex-pats in 25 countries, has found that many ex-pats are simply repatriating their savings back to their nations of origin.
The report found that just 17 per cent of ex-pats have savings in local bank and building society accounts in their new country of residence while just 16 per cent invest in local managed funds and 12 per cent in foreign exchange vehicles.
The report also finds that 47 per cent of ex-pats believe the economy in their current country has worsened since the start of 2009, with 93 per cent of those in Spain and 60 per cent of those now living in Belgium, France and the UK agreeing with that statement. Of those who believe that their local economy has worsened, 6 per cent are considering a move home and 7 per cent are actively looking to move home because of the economic situations, the report claims.
However, the Bric nations of Brazil, Russia, India and China are emerging as promising ex-pat hotspots, according to the report, which claims 63 per cent of expats there are earning more than in their countries of origin.
The report says: “Although all Bric-based expats had a much sunnier economic outlook than the world average, ex-pats in Brazil were most positive, with over two-thirds believing the economic situation had imp-roved over the past year.”